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To companies, this will translate to higher cost of inputs, which leaves them with two options: cut cost or raise prices.
If companies decide to cut cost, they will downsize and layoff thousands of workers. While this is an ideal business solution, it does not solve the economic problems at hand. With thousands of workers unemployed, less disposable income will be available for consumption, which will shrink profits and affect global GDP.
Alternatively, companies may decide to raise prices and put the burden on the consumers. By doing so, the obvious problem will be inflation, which is the biggest fear of every government...
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